Donald Trump has officially announced a massive $700 million investment aimed at reviving the coal industry, utilizing his wartime authority to push this plan forward, The Guardian reported. This move is being framed by the administration as a strategic effort to lower energy costs and reduce the overall cost of living for Americans.
The president invoked the Defense Production Act, a Cold War-era law that allows for broad executive power to support industries deemed essential to national security, to secure the necessary funding for this initiative. “So today we’re taking historic action to bring down the price of energy and the cost of living for all Americans with the power of clean, beautiful coal,” Trump said at the White House on Thursday.
The volatility in energy prices follows the ongoing war with Iran and the resulting closure of the Strait of Hormuz. According to data from the AAA motoring group, the average price of a gallon of petrol in the US hit $4.24 on Thursday. This is a significant jump from the $2.98 recorded on the day the US and Israel began striking Iran. Furthermore, the Bureau of Labor Statistics reported that overall energy prices for consumers rose by 17.9% in the year leading up to April.
This financial injection is coming at a time when energy prices have been climbing steadily
The $700 million package is split across several specific projects. According to the president, $500 million of federal funds will be directed toward keeping 14 existing coal plants operational while also funding a new export terminal in California. The Department of Energy is providing an additional $200 million to build two brand-new coal plants in Alaska and West Virginia. These will be the first new coal plants constructed in the US since 2013.
“As a result of the $700m investment that I’m announcing today, we will protect 14 coal plants and 42 coalmines, a tremendous number, and build two new coal plants and one massive new export terminal,” Trump said.
The scope of this plan reaches across 10 states, including Kentucky, North Carolina, Indiana, Tennessee, Arkansas, Arizona, Oklahoma, North Dakota, Wisconsin, and West Virginia. Trump noted that these states are ones he won in the election. The administration expects the project to support around 14,000 jobs in total, with the new export terminal in Oakland, California, accounting for more than 1,400 of those positions.
The administration’s messaging around this policy is very specific. “You’re not allowed to say ‘coal’ within the Trump administration unless it’s preceded by the words ‘clean, beautiful’,” Trump said on Thursday. “Complicates our life, but it’s good.” This rebranding effort has even included the creation of a mascot named Coalie, which has been featured in social media posts wearing sunglasses.
However, the reality of the industry remains a point of contention. While the president claims that his actions will save consumers $50 billion in energy generation costs, many experts point out that coal is the most carbon-dense fossil fuel and is a primary contributor to the climate crisis. Research indicates that air pollution from coal plants was responsible for approximately 460,000 deaths in the US between 1999 and 2020.
Environmental organizations have been vocal in their opposition to the new funding. Patrick Drupp, the climate policy director of the Sierra Club, called the move “disgusting and reprehensible,” arguing that the funds are being directed toward plants that increase health risks and costs for citizens.
Similarly, Kit Kennedy from the Natural Resources Defense Council expressed disbelief at the allocation of taxpayer money. “What’s next, a taxpayer bailout to build new phone booths?” Kennedy asked. “This is going to mean higher bills and dirtier air. What a waste.”
Despite the criticism, the National Mining Association has welcomed the news. Rich Nolan, the chief executive of the organization, stated that increased coal production would provide a necessary buffer against volatile energy prices and help meet the growing electricity demands of the artificial intelligence sector. Trump also used the announcement to criticize his predecessors, claiming that his administration has already approved 76 permits for coal projects in just over a year, contrasting that with what he characterized as a lack of progress under Joe Biden.
As the administration moves forward, it remains clear that coal will continue to be a central part of their energy strategy.
Published: Jun 5, 2026 04:45 pm